Oil Yielded Double Profits: How Russia Boosted Its Budget Revenues
10 April 09:32
Russia is set to see its revenue from the main oil tax double in April—to about $9 billion—due to the oil crisis triggered by the U.S. and Israel’s war against Iran.
This was reported by "Komersant Ukrainian", citing Reuters.
Price surge and tax revenues
After the U.S. and Israel struck Iran in late February, Tehran effectively closed the Strait of Hormuz—a route through which about 20% of the world’s oil and LNG passes. This caused a sharp rise in oil prices: Brent futures exceeded $100 per barrel.
According to Reuters calculations, the mineral extraction tax (MET) for Russia’s oil industry will rise in April to approximately 700 billion rubles (about $9 billion), compared to 327 billion rubles in March. This is also 10% higher than in April of last year.
The average price of Russian Urals crude, which is used for taxation purposes, jumped to $77 per barrel in March—the highest level since October 2023 and 73% higher than in February ($44.59). This significantly exceeds the $59 per barrel price set in the Russian Federation’s 2026 budget.
Restrictions on Russia
Despite this, Russia’s economy remains vulnerable. In the first quarter of 2026, the Russian Federation’s budget was compiled with a deficit of 4.58 trillion rubles (1.9% of GDP).
The Kremlin stated that, against the backdrop of the global energy crisis, it is receiving a “huge number of requests” for Russian energy resources from various countries.
Risks to Production
Systematic attacks on Russian energy infrastructure remain an additional factor threatening Moscow’s financial stability.
Damage to oil refining and production facilities creates risks of a reduction in physical oil production volumes.
The ultimate benefit to the Russian budget will depend on the duration of the conflict in Iran and the country’s ability to maintain export capacity under the pressure of sanctions and military action.
